- The Special Tribunal has frozen the R2.8 million pension of former National Lotteries Commission chief working officer Phillemon Letwaba.
- This follows an software by the Special Investigating Unit, which was authorised in 2020 by President Cyril Ramaphosa to analyze the NLC.
- The SIU says this follows Letwaba’s resignation pending a disciplinary listening to into his position within the distribution of Lottery funds to a number of non-profit organisations.
The pension of former National Lotteries Commission chief working officer Phillemon Letwaba has been frozen by the Special Tribunal.
This adopted an software for a preservation order by the Special Investigating Unit (SIU). The order was granted after a secret listening to earlier than a choose on 16 September.
Letwaba resigned with fast impact late final month, simply weeks earlier than he was resulting from seem earlier than a disciplinary listening to.
Read: Lottery’s Phillemon Letwaba resigns below a cloud
In phrases of the order, the Liberty Group, named as a respondent within the software, might not pay out pension advantages of R2.8 million resulting from Letwaba, pending a closing determination on an software that have to be introduced inside 60 days.
In a media launch revealing the order, the SIU mentioned it had approached the Special Tribunal on an pressing foundation to freeze Letwaba’s pension advantages after he resigned pending the disciplinary listening to into his position within the distribution of Lottery funds “to several non-profit organisations (NPO)”.
The SIU has been investigating corruption involving Lottery funds since President Cyril Ramaphosa signed a proclamation in November 2020 authorising the unit to analyze the NLC. The SIU’s investigations, as properly as GroundUp’s own reporting over greater than 4 years, have positioned Letwaba on the coronary heart of NLC corruption operating into lots of of thousands and thousands of rands.
The SIU mentioned its probe had revealed that “Mr. Letwaba allegedly benefited personally from monies received by NPOs” from the National Lotteries Commission. “The SIU investigation had revealed that Mr. Letwaba allegedly used friends and family businesses, and trusts to receive money from NPOs for his benefit and that of his family,” the SIU mentioned.
The SIU mentioned it had recognized a number of firms and two trusts linked to Letwaba concerned in looting Lottery funds: Upbrand Properties, Mosokodi Water Solutions and Drilling, Mosokodi Farming Project, Kaone Wethu, Redtag and the Mosokodi Letwaba Family trusts.
The SIU mentioned its investigation had revealed {that a} Limpopo-based NPO, Simba Community Development Foundation, had obtained about R25 million to rebuild Vhafamadi Secondary School, and had transferred about R4 million to Upbrand Properties 12 days later, “without evidence of work being done and in violation of the funding agreement”. Simba obtained R28.3 million in complete.
The SIU assertion confirmed an investigation by GroundUp, which revealed that Upbrand in flip, paid R3.6 million to attorneys dealing with the acquisition of a luxurious house on a golf property for former NLC Commissioner Thabang Mampane. The home is registered within the identify of a belief through which Mampane, her husband and their two grownup kids are all beneficiaries. Mampane resigned with fast impact shortly after GroundUp reported on how the home had been paid for.
Read: Lottery boss resigns
GroundUp additionally reported that audit agency SkX, which the NLC employed to analyze allegations of corruption in opposition to it, had really helpful {that a} legal criticism be lodged in opposition to Simba and its administrators.
SkX discovered that Simba had submitted fraudulent paperwork and had by no means completed the college undertaking and that the Lottery funds couldn’t be accounted for. Unregistered contractors had been used to construct the college.
In the case of Vhafamadi, SkX discovered that the NLC disregarded its personal management mechanisms, {that a} household enterprise linked to Letwaba had benefitted, and that poor work had been executed with out the provincial Department of Education elevating the mandatory pink flags.
Read: Auditor-General points damning report on Lottery funds
Millions from the Vhafamadi grant have been additionally paid out to a number of people and corporations together with Iron Bridge Travelling Agency, of which Letwaba’s cousin Karabo Sithole, was sole director on the time and of which his spouse, Rebotile Malamane, is now sole director. Iron Bridge obtained R2 million.
Within 12 days of Simba receiving the primary tranche of R25 million from the National Lotteries Commission, the stability in Simba’s checking account had dwindled to R2.4 million.
The SIU is empowered by legislation to institute civil motion within the Special Tribunal,, and if proof of legal exercise is discovered, the SIU refers the proof to the National Prosecuting Authority for additional motion.
© 2022 GroundUp.
This article was first revealed on GroundUp, here.